The paper “ Dell Value Chain - Dell’ s Direct Sales Model as a Good Supply Chain, Supply Chain Management Principle, and Distribution Management” is a forceful variant of a case study on the management. Many profit-making companies come up with means and strategies to remain relevant in business and compete favorably (Dawei, 2011). According to Basu and Wright (2010), competent management has to ensure that various units within an organization are operational and efficient. Management objectives aim to increase productivity, increase profitability, increase sales, eliminate time wastage, and reduce the cost of operation.
All the goals apply to the various departments that include the production department, human resource department, marketing, and supply department (Blokdijk, 2015). Due to this broad scope of management, managerial roles are divided and assigned to a departmental level. In this case, the department of marketing and supply coordinates and controls all matters relating to marketing and supply of organizational products or services. One important duty of the marketing and supply department is supply chain management. The department role requires the agency to investigate the external business environment and develop strategies to maintain the supply of a company’ s product (Alturas et al. , 2006). This report reviews a case study of the Dell value chain, opportunities, and impacts, as well as the supply chain and supply chain management principle. Case Study: Dell Value ChainDell’ s direct sales model is a good supply chainFor many years, Dell Company has avoided using retailers and middlemen when supplying its products (Manataki, 2007).
Dell opts to sell its personal computers online on its www. dell. com website where they link with their willing buyers. This step adopted by Dell is useful in eliminating many steps in the supply chain that can increase the cost of supply.
Besides, the method used by Dell also allows them to contact directly their esteemed customers, where they can get useful information concerning Dell’ s product (Blokdijk, 2015). Dell can know their customer base and related needs and respond to the needs adequately. Dell has its way of characterizing its customers into large organizations, small business enterprises, and personal consumers. Dell can forecast future trends through this method of supply. The individual customer can work with the supplier as real partners in business through the premium pages and platinum council.
The various channels adopted by Dell include Customer Experience Initiative, Direct2Dell blog and IdeaStorm (Manataki, 2007). As stated before, all companies aim at reducing costs and increasing sales with the corresponding profit. For this reason, a company will tend to adopt a method by which they can get a product to a broad customer base at a lower cost (Croxton et al. , 2001). The Dell Company has taken advantage of the growing technology to sell personal computers online.
According to Stadtler and Kilger (2007), an efficient supply chain management should ensure that customer relations are enhanced. Improving customer relationships enables quick access to relevant information concerning the customers’ complaints and preferences (Basu & Wright, 2010). Dell has been efficient in enhancing customer relations through direct communication. As a result, Dell Company can gather useful customer information that can be useful for the upgrading of the product or planning for future development. Supply chain management is efficient when there is available data concerning the market base and customer preference (Dawei, 2011).